Germany’s Employment Costs Reach Record High Amid Rising Health Insurance Contributions
In January 2025, Germany recorded a historic peak in ancillary labor costs, reaching 42.3% of gross wages. This increase is primarily attributed to higher contributions to statutory health insurance, which rose from 16.3% to 17.5%. The report highlights that while health insurance contributions have surged, retirement and unemployment insurance rates have remained stable. This marks a new high surpassing the previous record of 42.1% set in the late 1990s.